The Salem Company bond currently sells for $ 1,542.48, has a coupon interest rate of 17%...

Question

Question

The Salem Company bond currently sells for $ 1,542.48, has a coupon interest rate of 17%...

The Salem Company bond currently sells for $ 1,542.48, has a coupon interest rate of 17% and a $1000 par value, pays interest annually, and has 13 years to maturity.

a. Calculate the yield to maturity (YTM) on this bond.

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

face value = 1000 Present value = 1542048 Coupon = 170 Time = 13 year Using financial calcula for, Fv= 1000 pr= - 1542048 PMT

Add a comment

Answer 2

Similar Homework Help Questions

The Salem Company bond currently sells for $956.79 has a coupon interest rate of 8 %...

The Salem Company bond currently sells for $956.79 has a coupon interest rate of 8 % and a $1000 par value, pays interest annually, and has 12 years to maturity. a. Calculate the yield to maturity (YTM ) on this bond. b. Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond.
The Salem Company bond currently sells for $936.37has a coupon interest rate of 11% and a $1000 par value, pays inter...

The Salem Company bond currently sells for $936.37has a coupon interest rate of 11% and a $1000 par value, pays interest annually, and has18 years to maturity. a. Calculate the yield to maturity (YTM) on this bond.
The Salem Company bond currently sells for $522.76 has a coupon interest rate of 6%and a...

The Salem Company bond currently sells for $522.76 has a coupon interest rate of 6%and a $ 1000par value, pays interest annually,and has 10 years to maturity. a. Calculate the yield to maturity (YTM) on this bond.

ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate...

ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate of 9% and a $1000 par value, pays interest annually, and as 18 years to maturity Calculate the yield to maturity (YTM) on this bond Explain the relationship that exists between the coupon interest rate and yield to maturity and the par value and market value of a bond. The yield to maturity on this bond is %. (Round to three decimal places.) ....
Please explain how to solve on a financial calculator, step by step. Thanks :) Yield to...

Please explain how to solve on a financial calculator, step by step. Thanks :) Yield to maturity The Salem Company bond currently sells for $1,659.07, has a coupon interest rate of 12% and a $1000 par value, pays interest annually, and has 20 years to maturity. Calculate the yield to maturity (YTM) on this bond. The yield to maturity on this bond is l 1%. (Round to three decimal places.)
The bond shown in the following table pays interest annually. Par value Coupon interest rate Years...

The bond shown in the following table pays interest annually. Par value Coupon interest rate Years to maturity Current value $100 8% 6 $80 Calculate the yield to maturity (YTM) for the bond.

The bond shown in the following table pays interest annually. Par value Coupon interest...

The bond shown in the following table pays interest annually. Par value Coupon interest rate Years to maturity Current value $100 12% 20 $130 Calculate the yield to maturity (YTM) for the bond. Show formula
ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond...

ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM? ABC issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM? A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity...
A coupon bond that pays interest annually has a par value of $1000, matures in 11...

A coupon bond that pays interest annually has a par value of $1000, matures in 11 years, and has a yield to maturity of 3%. If the coupon rate is 7%, the intrinsic value of the bond today will be

A coupon bond that pays interest annually has a par value of $1000, matures in 11...

A coupon bond that pays interest annually has a par value of $1000, matures in 11 years, and has a yield to maturity of 3%. If the coupon rate is 7%, the intrinsic value of the bond today will be

The Salem Company bond currently sells for $ 1,542.48, has a coupon interest rate of 17%...

Homework Answers

Add Answer to:
The Salem Company bond currently sells for $ 1,542.48, has a coupon interest rate of 17%...

Post as a guest

Earn Coins

The Salem Company bond currently sells for $956.79 has a coupon interest rate of 8 %...

The Salem Company bond currently sells for $936.37has a coupon interest rate of 11% and a $1000 par value, pays inter...

The Salem Company bond currently sells for $522.76 has a coupon interest rate of 6%and a...

ield to maturity The Salem Company bond currently sells for $95544, has a coupon interest rate...

Please explain how to solve on a financial calculator, step by step. Thanks :) Yield to...

The bond shown in the following table pays interest annually. Par value Coupon interest rate Years...

The bond shown in the following table pays interest annually. Par value Coupon interest...

ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond...

A coupon bond that pays interest annually has a par value of $1000, matures in 11...

A coupon bond that pays interest annually has a par value of $1000, matures in 11...

The Salem Company bond currently sells for ​$ 1,542.48​, has a coupon interest rate of 17​%...

Homework Answers